Income effects of cooperative membership: A heterogeneous analysis

Abstract

This letter explores the heterogeneous effects of cooperative membership on farm income. We employ a two-stage predictor substitution model combined with an unconditional quantile regression model to address the endogeneity issue associated with the cooperative membership variable and analyze the data collected from banana farmers in China. Results show that cooperative membership affects farm income heterogeneously. Banana farmers at the higher-income quantiles tend to benefit more from cooperative membership than their counterparts at the lower-income quantiles.